Hyundai Rotem Introduces Win-Win Performance Sharing System... Invests 200 Billion Won in Partner R&D

by Lee Hyeonjoo

Published 09 Mar.2026 09:49(KST)

Win-Win Growth Fund Expanded to 150 Billion Won

Hyundai Rotem is significantly expanding its financial support for partner companies by introducing a performance-sharing system and more than doubling the size of its "Win-Win Growth Fund" to 150 billion won.

On March 6, at its Changwon plant in South Gyeongsang Province, Hyundai Rotem held the "2026 Hyundai Rotem Defense Win-Win Cooperation Conference" with 67 partner companies. The company announced its strategic plans to encourage and support the localization of parts and research and development (R&D) of next-generation advanced weapons by its partners, according to a statement released on March 9.

Participants of the 2026 Hyundai Rotem Defense Win-Win Cooperation Conference are taking a commemorative photo. Hyundai Rotem

Hyundai Rotem will newly introduce the "Win-Win Performance Sharing System," which shares the achievements with partner companies that have contributed to export competitiveness in newly awarded overseas projects. Under this system, after a successful localization of parts, Hyundai Rotem will return 100% of the cost savings to the partner company in the year the contract is first executed, and 50% the following year. If the localized parts or technologies are supplied over an extended period, Hyundai Rotem will provide additional support by guaranteeing the partner’s order volume.

The "Win-Win Growth Fund," designed to help partners secure financing smoothly, will also be expanded. The fund will be operated at a scale of 150 billion won-more than double the previous 70 billion won. When requested by partners, Hyundai Rotem will provide investment and working capital at low interest rates through amounts deposited in financial institutions.

Additionally, Hyundai Rotem signed a three-party "Hyundai Rotem Partner Win-Win Growth and Productive Financial Support MOU" with its partner companies and Shinhan Bank. This initiative aims to make win-win financial support for partners more concrete, along with the efficient operation of the Win-Win Growth Fund. In the future, partners will receive trade finance support, guarantees, and preferential loan rates.

Hyundai Rotem will also invest a total of 200 billion won over two years, through next year, in R&D for the localization and performance improvement of parts and the development of advanced weapons by partners. The scope of this support includes the localization and performance improvement of core components for next-generation manned and unmanned ground weapon platforms, aerospace, artificial intelligence (AI), and unmanned systems.

Education for partner company employees through Hyundai Rotem’s Technical Training Center will be expanded as well. This year, more than 5,600 employees from partner companies are expected to take customized courses at the center in areas such as quality, production, design, AI utilization, and work automation.

Hyundai Rotem will also focus on maintaining the defense industry ecosystem to prevent the outflow of partner technologies and personnel. Specialized consulting will be provided to diagnose partners’ security management systems through training on simulated hacking and responding to malicious emails, followed by improvement plans. In addition, when requesting technical data from partners, a more robust security system will be implemented, and new clauses will be added to the company’s code of ethics to prevent the outflow of partner personnel.

Meanwhile, Hyundai Rotem announced that it has reorganized its structure to strengthen communication with partners, by newly establishing the Win-Win Cooperation Office under the Purchasing Division and the Win-Win Cooperation Team under that office, in order to focus on win-win cooperation initiatives.

Lee Yongbae, President and CEO of Hyundai Rotem, stated, "Amid rapidly changing international circumstances, the world is paying attention to the capabilities and role of K-Defense. I hope this conference becomes a meaningful occasion to further solidify the trust that your growth is truly our success."